Debtors & Creditors Accounts Masters in Tally

Debtors Creditors Bill Reference in Tally

In business, transactions with Buyers & Suppliers (referred as Parties) form the bulk of the business transactions.

In Party ledger Account, you get the transactions and balance of each Party. However, a Party may have several transactions, with various due dates for payment.

Payments are made in reference to each bill and clear up each open bill. Balance due in respect of each open bill is tracked to control accounts receivables and accounts payables.

To maintain details in respect of each transaction (Bill), a separate unique identifier, called Bill Reference is created, for each new transaction.

Normally Parties are allowed some credit period to make payment of each Bill. You my set up  standard credit period in respect of each Party and also specific bill wise credit period for each Bill. Consequently, you can precisely track payment of each Bill as per Credit period allowed.

All payments related to respective transaction are linked to Bill Reference. Balance in respect of each Bill Reference and Interest on delayed payment in respect of each Bill is tracked to manage and control Accounts Receivables & Payables.

Company Features set up for Bill Reference & Overdue Interest

To activate Bill Reference features for the Company, Click F11:Features>Accounting Feature to get Accounting Features screen.

At Outstanding Management  section of Accounting Features, set the following options  to activate the respective options :

Bill Reference & Credit Features Activation ; Set the Bill Reference options asfollows :
Bill Reference Feature for Traders’ Ledger Accounts: Set Yes at Maintain Bill By Bill to activate Bill Reference Feature for Ledger Accounts under Sundry Debtors, Sundry Creditors,  and Branch Accounts
Bill Reference Feature for Other ledger accounts : Having set Yes at Maintain Bill By Bill, further set Yes at (for Non Trading Accounts also) to activate Bill Reference Feature for other Ledger Accounts also (Like Ledgers under Loans & Advances, Loans Liabilities Groups etc)

Interest : Set the options for Interest on delayed payments, as follows

  • Activate Simple Mode Interest Feature : Set Yes at Activate Interest Calculation to activate Simple Mode (Single Rate) Interest Computation
  • Activate Advance Mode Interest Feature : Having set Yes at Activate Interest Calculation, further set Yes at Use Advanced parameters to activate Advanced (Multi-Rate) Interest Feature

Bill Reference & Interest Features set up in Tally

Credit Limit : To set Credit Limit for Customers and credit period for Parties, at Budgets & Scenario section, set Yes at Maintain Budgets & Control.

 Credit period set up features in Tally

Advanced Entries at Accounts Ledger in Tally

Debtors & Creditors Ledger Accounts set up in Tally

We have explained Ledger Accounts set up. Here we specifically explain Party Ledger Accounts related entry.

Party Ledger details entry in Tally

Having set the respective options for Accounts Master Configuration & Accounts Masters features, you may selectively set the desired option to respective Party ledger accounts, as required.

Bill by Bill & Credit Feature in Party Account Master Activation in Tally

  • Bill Details: At Maintain Balances Bill By Bill, set Yes to activate Bill By Feature. Consequently you will have to specify Bill Reference wise break up of Opening Balance of each Ledger account, and  provide Bill Reference of each transaction, to track Bill Reference wise transaction details and balances
  • Default Credit Period : Credit Days are used to ensure payment of each bill within due date. At Default Credit Period, enter the standard credit period allowed to the Party, which would be carried during voucher entry, for convenience. You may set the credit days for regular Parties whom you normally sell on Credit (e.g 30, or 30d 30 days, 2m for 2 months, 1y for 1 year etc). The Due Date of a Bill is computed from the Invoice Date / Effective Date of the Bill and the Credit Period entered .
    • Credit Period check up : At Check for Credit Days during Voucher Entry, set Yes to get a warning message when the party ledger selected in a transaction has exceeded the credit period, and outstanding bills have not been cleared. Set No to avoid warning during entry. Due date, Interest on delayed payment etc are computed as per Credit Days.
  • Credit Limit : Credit Limit is used to control receivables. It denotes the maximum credit limit that the Party may be allowed. If the dues of the Party exceeds the limit, further Sales to the Party is restricted. No sales voucher will be allowed to be created which makes the Balance dues form the Party to exceed the Credit Limit set.

Having set Yes at Maintain Budgets & Control, at Party Ledger Entry screen, at Set Credit Limit, enter the Credit Limit for the Party (if you like to set any), else leave zero (no limit set).

Consequently, when you attempt to enter a Sales Voucher, if the new voucher being entered causes to exceed the outstanding dues cross the specified credit limit (NOT Zero), a warning message will be prompted and you will not be allowed to enter the Voucher. 

In that case, you have to exit from the voucher, change Credit Limit and again come back to voucher entry). Leave zero, if you do no intend to set any credit limit.

  • Ledger Account Notes : Having set Yes at Add Notes at Ledger Accounts at Configuration, at  Notes , you may write internal Notes about the Party for your own reference. The Ledger Note is not printed in any report, but may be displayed on screen in some reports .
  • Ledger Account Description : Having set Yes at Add Description at Ledger Accounts, at Ledger Accounts Master, at Description, you may write Description about the Party for your own reference. The Ledger Description is neither printed, nor Displayed in any report, but the data may be exported to be used by external application or used for customization

Party Mailing Details entry in Tally

Having set Yes at Use Addresses for Ledger Accounts at Accounts Master Configuration, at the right part of the Ledger Accounts entry screen, you enter the mailing & related details of Parties as follows

Party Ledger Mailing Details entry in Tally

  • Party Ledger Mailing Name : At Name, under Mailing Details section at right part, the Ledger Account Name as entered is carried. Normally, the Ledger Name & Mailing Name is same, but may differ in some cases. The Ledger Account Name is used to distinctly identify the Ledger Account. So, it is displayed for internal reports & selection of Ledger Account, while Mailing Name is printed in all external Reports.

For instance, when you create separate ledger accounts for various Branches / units of the same legal Party, or where you have several distinct Parties with similar Names, you should write different Names but same Mailing Name

For example, you have 2 parties called Binapani Putstakalaya, one at Kolkata & another at Patna. You will create 2 separate Ledger Accounts. At Ledger Name, write Binapani Putstakalaya (Kol) & Binapani Putstakalaya (Pat). However at Name under Mailing section, you will write Binapani Putstakalaya, at both the Ledger Accounts.

Party Mailing Address :  at Address , enter Party’s Main office address, which is normally printed in vouchers & reports.

Country : At Country, normally India is auto carried by default, else select the Country from the list.
When India is selected at Country, you may further  enter as follows

  • State : At State, select State from the List (when India is selected at Country).
  • PinCode : At PinCode, enter the 6 digit PinCode

Party Contact Details : Having set Yes at Use Contact Details, at Accounts Master Configuration, enter following details :

  • Contact Person : At Contact Person, enter the Name of Contact person (or key person), of the Party whom you normally talk to.
  • Telephone Number : At Telephone No, enter the Telephone Number (Land Line) of the Party
  • Mobile Number : At Mobile No. enter the Mobile Number of the Party
  • Fax Number : At Fax Number, enter the Fax Number of the Party, if any
  • E-Mail : At e-mail, enter the e-mail ID of the Party, if any. E-mail may be sent to the Party through Tally.ERP 9, using this ID.
  • CC to : At cc to, enter the e-mail cc ID of the Party. Copy of the e-mail may be sent to the Party
  • Website : At website, enter the website URL. Party website may be accessed through the URL

Party PAN : At PAN / IT, under Tax Registration details section, enter the PAN. If PAN is not entered in proper format, an error message will be evoked. It is printed in Confirmation of Accounts, and other reports.

Party Multiple Mailing Details in Tally

For Parties having multiple business units, you may enter multiple mailing details for each unit (but maintain ONE ledger Account for all units), you may enter mailing details for each unit.

Now, you may selectively print the respective mailing details in respect of documents related to the units. Thus, you may enter mailing address for each unit (for same Party Ledger Account), and at the time of Invoice printing, you may select the mailing address of the respective unit.

Party Ledger Multiple Mailing Details Activation in Tally

Select F11:Features>Accounting  and set Yes at Use Multiple Mailing details for Company & Ledger  (under other Features section), to activate Multiple Mailing Details features for the Company.

Consequently, you will get option to set Multiple Mailing Address for the Company, as explained earlier, and also option to enter Multiple Mailing Address at Ledger Accounts Master entry / alteration screen, to enter multiple mailing details for specified Ledger Accounts.

Party Ledger Account Multiple mailing details activation in Tally

Party Ledger Multiple Mailing Details entry in Ledger Accounts in Tally

Having set Yes at Use Multiple Addresses at Accounts Master Configuration, and having set Yes at Use Multiple Mailing details for Company & Ledger  at F11:>Features>Accounting (under other Features section), as described earlier, you may further set Yes at Set / Alter Multiple Mailing Details , at Ledger Accounts screen, to get Address Type Entry screen. Now enter mailing details in respect of each Branch / Office of the Party Account

Party Leger Multiple Address Entry in Tally

At Address Type Entry screen, you may enter name of each of its offices. Enter the Address Type names.

Party Address Type & Address Details entry in Tally

Having entered the name of the Unit at Address Type screen,  Press <Dn Arrow> key  to successively enter all the Address Types.

Now select the Address type & press <Enter> to get the Mailing Details screen  and then enter the details for each address type, in the same way as Ledger Address & Other Details, as explained

Alternatively, having entered the Address Type, press <Enter> to enter the address details of the respective Address Type entered at Mailing Details screen simultaneously.

Party Leger Statutory & Tax Info entry in Tally

 After entry of Address and Contact details ,you may also enter the PAN & Sales Tax / VAT details of the Branch, under Statutory & Tax Info section, as applicable.

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